Which of the Following Is Correct

question 72

Multiple Choice

Which of the following is correct?

• A)AC = AFC/Q
• B)AC = AFC + AVC
• C)AC = MFC + MVC
• D)TFC + TMC = MFC + MVC

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Definitions:

Direct Labor Cost

The total cost of all labor hours that are directly involved in the production of goods or the provision of services.

Manufacturing Costs

Expenses directly involved in the production of goods, including direct labor, materials, and manufacturing overhead.

Delivery Expenses

Costs incurred by a company to deliver goods to a customer, including transportation and handling charges.

Raw Material

Basic materials that are used in the production process to manufacture finished goods.